Wrap-up — Week #14
Ahoy Pirates
Happy new week aboard the ship. In case you’ve been busy and missed some of the recent events, here is an opportunity to catch up on the AMA and the Community Call.
AMA of the week: TheDoc — CEO of FantOHM & USDB
Could you tell us what FantOHM DAO is about?
We started Fantohm as an Olympus fork. We shared a lot of similarities at inception, in particular when it comes to FHM, our rebase token. We quickly sought to leverage our protocol to create new products and bring values to long time holders as well as new investors.
Could you tell us more about these new products, in particular USDB?
We introduced our stablecoin during last Christmas time. It was initially intended to unlock the idle $FHM — our treasury rebase token — stored into the DAO operating account through the proof of burn mechanism. It works as follows: to mint a USDB, FHM needs to be sent to the bonding contract. The FHM is burnt, a receipt of its value is recorded in the blockchain as a “proof of burn” and the corresponding amount of USDB is minted accordingly. Finally, USDB has a deflationary effect on FHM.
To prove its consistency against a strong stablecoin, we opened a stablepool on Beethoven that allows trading USDB against DAI at a 1:1 peg.
The USDB branding (formerly known as FUHD) stands for USD “Balance”. Balance is the new project under which we will launch our new products with USDB as a backbone. In addition, Balance refers to the link between the products and the treasury.
What are the mechanics behind the peg? Why to use a bonding contract instead of a PSM (Peg System Module)?
The Bonding contract of Olympus is a powerful tool that offers interesting use cases. We can utilize it to replicate the function of a PSM that we can combine with our treasury to create strong arbitrage opportunities. For instance, when USDB is traded above $1, we offer a bond to purchase USDB instantly with DAI at a $1 per USDB valuation. Conversely, when USDB is traded below $1, we offer a bond to mint FHM against USDB at a discount.
How is the yield generated on your new “TradFi Bonds” products?
Each DAI that is deposited into the Bonding contracts goes into our treasury and is invested into other assets to generate income that will ultimately be redistributed to bonders in FHM. For instance, the single sided staking product that we will release soon includes an impermanent loss component that will be compensated with FHM.
Are there other products that could leverage the partnership with Liquid Driver?
We have leveraged the Olympus Bonding contract to create a new liquidity product that would allow a protocol to increase the liquidity of its native token while in the meantime increasing the total market cap of USDB. It would be protocol to protocol product only.
Has USDB been audited?
Yes, USDB (formerly known as FUHD) and our products have been audited by Spadetech and Hacken. As well we have other audits that are being conducted by top tier one firms. These ones are much more time consuming, but we will always do our best to mitigate any of the risks involved by our operations.
What is the long term vision of Fantohm?
We have a vision to be here for a long time and keep developing quite big and ambitious projects. The team has the ability to build new products under the Umbrella of Balance to generate new sources of revenue for the treasury without having to be technically attached to the original Fantohm protocol. A lot of Olympus forks struggles to create value and pivoting the team towards a new brand development is a very exciting move. It does not mean that we are leaving fathom behind because at the end of the day, all the products released under Balance are all for Fantohm and FHM holders.
Summary of the Deck Talk — Week #14
Security concerns
Phishing campaigns and malicious users are risks users need to be constantly aware of. We strongly advise to conduct your own due diligence every time you are receiving an external link. If any doubt on it, feel free to ping a moderator or any other member of the community. They will be pleased to help you.
Governance power acquisition
Accumulating voting escrow Tokens (“veTokens”) such as InSpirit or veHND is creating a streamline source of revenue for the protocol. Through our wrappers, we give to the users the flexibility to earn more revenue keeping an exit option on its position through our Beethoven pools. We are also exploring many other ways to capture new governance tokens without emitting new LQDR. However, we need to be cautious when assessing what veToken to acquire. We need to make sure that we can generate revenue for the future wrapper holder while bringing enough TVL to make it worth it spending voting power to keep a strong peg for the wrapped product on the secondary market.
Performance metrics (in addition to Analytics Dashboard)
cLQDR by Growth DeFi surpassed the 50k locked mark, representing over 2% of xLQDR. These analytics are freely accessible at https://analyticsliquiddriver.com/. Other metrics are available regarding linSPIRIT, liHND and xLQDR.
Community wise, the amount of users on Discord is rising steadily, with key indicators above the benchmark. Twitter continues to see high growth with the recent passing of 40k (and soon 45k) mark in followers.
Crew NFTs and future collection(s)
85 users reached level 5 so far and successfully unlocked their crew NFTs — only 15 are still left within the 100 limited pieces collection. We have started working on a new collection that will be released later this year.
xLQDR APR development
The recent surge in LQDR price relative to our partner governance token made the APR drop to a level of 70%. We expect to reduce this gap with the upcoming release of SpiritSwap V2, Beethoven-x V2 and SpookySwap V2.
In the meantime, we are distributing the proceeds of a DAO-to-DAO token swap between Liquid Driver and DEUS. We have decided to share the DEUS tokens for 60 days with xLQDR holders following a 20X on our initial investment. As a result we have managed to get the APR back to its previous level.
Furthermore, we are expecting the Shadow Farms implementation to have a sideways effect on APR afterward. On one hand, APR will no longer come from the farmed tokens directly, but instead a performance fee applied on top of the strategy. On the other hand, implementation of Shadow Farms will allow a hard cut of LQDR emission that will help control the overall inflation.
Shadow Farms
The release is taking a bit longer than expected because we are coordinated to launch with SpiritSwap V2. It would be a major logistical hassle to migrate to new pools shortly after launching Shadow Farms. However, beta testing and the Immunefi bug bounty could start sooner.
